Nigerias Gloo.ng drops consumer e-commerce, pivots to e-procurement

Nigerian startup Gloo.ng is ceasing consumer online retail and pivoting to B2B e-procurement with Gloopro as its brand-new name.

The Lagos-based gues has called it quits on e-commerce grocery services, shifting to a make that furnishes large and medium corporates with everything from desks to toilet paper.

Gloopro’s brand-new pulpit will generate revenues on a monthly reward organization and percentage points on goods delivered, according to Gloopro CEO D.O. Olusanya.

Gloopro, which raised around$ 1 million in grain uppercase as Gloo.ng, is also in the process of parent its Series A round. The startup appears to expand outside of Nigeria on that foster,” before the end of next year ,” Olusanya told TechCrunch.

Gloopro’s move away from B2C comes as several remarkable shopper digital auctions startups have failed to launch in Nigeria — Africa’s most populous society with the continent’s highest number of online customers, per a recent UNCTAD report.

The country is home to the continent’s firstly e-commerce startup unicorn, Jumia, and dishes as an informal bellwether for e-commerce startup activity in Africa.

Gloo.ng’s shift to B2B electronic commerce was prompted by Nigeria’s 2016 financial slump and a purchaser entreaty, harmonizing Olusanya.

“When the recession touched it altered all customer e-commerce negatively. We pictured it was going to take a longer time to get to sustainability and profitability, ” he told TechCrunch.

Then an existing patient, Unilever, sought an e-procurement mixture in 2017. “We is reported that the unit financials of that business was far better than customer e-commerce, ” said Olusanya.

Gloopro dubs itself as a “secure cloud based project e-procurement and commerce scaffold …[ for ]… corporate buy, ” per a company description.

“The age-old label Gloo.ng, “re gonna be all” remained and shut down absolutely. The corporate reputation will be PayMente Limited with the brand name Gloopro, ” Olusanya said.

From the Gloopro interface clients can line-up, pay for and arrange give of office supplies across multiple locations. The produce also raises procurement analytics and allows companies to designate consumers and permissions.

Olusanya touts the product’s welfares at improving transparency and efficiency in the buy process.

” It manufactures procurement transparent and reassuring. A slew of firms in Nigeria still use paper invoices and there are some shenanigans ,” he said.

Gloopro began offering the service in beta and build a client cornerstone prior to starting winding down its Gloo.ng grocery service.

In addition to Unilever, Gloopro buyers include Uber Nigeria, Cars4 5 and industrial paraphernalium firm LaFarge. Cars4 5 CEO Etop Ikpe and a spokeswoman for Uber Nigeria strengthened their purchaser status to TechCrunch.

Olusanya imagines the company can compete with other global e-procurement providers, including SAP Ariba and GT-Nexus, by” leveraging our sourcing and last-mile delivery know in Nigeria” and expertise directing around neighbourhood requirements in Africa.

Gloopro expects to punched$ 4 million in income by the end of the year and the company could contact $100 million during the course of its international expansion into countries like South africans, Kenya, Morocco, Egypt and the Ivory Coast, according to Olusanya. A seed investor to report on Gloo.ng’s approximates corroborated the company’s revenue expectancies with TechCrunch.

Gloo.ng’s pivot to Gloopro and e-procurement comes during an up and down interval for B2C online retail in Nigeria, home of Africa’s largest economy.

Last year, e-commerce startup Konga.com, backed by approximately $100 million in VC, was sold in a disturbed acquisition ,~ ATAGEND at a loss to investors, including Naspers. In late 2018, Nigerian online auctions platform DealDey shut down.

On the possible upside, several shops reported this year that Jumia — Africa’s largest e-commerce place and first unicorn headquartered in Nigeria — is pursuing an IPO. But that information is unconfirmed based on a February 8, Bloomberg fib without appointed sources. Jumia has declined to comment.

Read more: https :// techcrunch.com/ 2019/03/ 11/ nigerias-gloo-ng-drops-consumer-e-commerce-pivots-to-e-procurement /~ ATAGEND

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